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Reno City Attorney

MEMORANDUM

Date: March 20, 2017


To:
Thru:
From:
Karl S. Hall, City Attorney m
Mayor, City Council and City Manager

Jonathan D. Shipman, Assistant City Attorney


Subject: Item J.8; City Manager Agreement

Attached for your consideration is the proposed Employment Agreement (City Manager)
between the City and Sabra Smith Newby.
In general, the terms of the Agreement are as follows :
1. Term. Initial two year term, with automatic one year extensions starting in July 2017.
2. Salary. $200,000.00 per year.
3. Benefits. Standard benefits associated with a management level position of the City of
Reno, as may be modified by City Council from time to time, including but not limited to
sick leave, vacation leave, medical benefits, dental benefits, disability and life insurance
benefits, retirement benefits, and ability to participate in the deferred compensation
program and related matching contributions.
4. Reimbursement for temP-orary housing. commuting and relocation expenses. Relocation
to City of Reno by December 1, 2017. $10,000 maximum reimbursement for temporary
housing, commuting and relocation expenses.
5. Initial leave. Initial credit of 40 hours vacation and 40 hours sick leave.
6. Performance evaluation and salary review. Annual performance evaluation and salary
review in last quarter of fiscal year (April - June).
7. Termination and severance. Termination for convenience, five (5) months severance.
Termination for cause, no severance.
8. Professional development. As approved in annual City budget.

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EMPLOYMENT AGREEMENT
(Reno City Manager)

THIS EMPLOYMENT AGREEMENT (the "Agreement") is made and entered into on


March 22nd, 2017, by and between the CITY OF RENO, a Nevada municipal corporation
(hereinafter "Employer" or "City Council"), and SABRA SMITH NEWBY, (hereinafter
"Employee") an individual who has experience in local government management. Both pai1ies
agree as follows :
1. TERM
a. Initial term. In compliance with NRS 354.626(2)(e)(24 month maximum term),
the first day of Employee's employment under this Agreement shall commence on May 8th, 2017
(the "Effective Date") and shall continue until the second year anniversary date of the Effective
Date of this Agreement, unless sooner terminated pursuant to Section 7.
b. Automatic extension. On July l, 2017, the Tenn of this Agreement shall be
extended to June 30, 2019. On July is1 of each year thereafter (i.e., starting in 2018), the Term
shall be extended fol' one (1) additional year, unless either party elects not to extend the Term,
and notifies the other party of its election in writing prior to each such anniversary date. In the
event the Agreement is not automatically extended, all compensation, benefits and requirements
of the Agreement shall remain in effect until the expiration of the Term of the Agreement, unless
sooner terminated under the provisions of this Agreement.
2. DUTIES AND AUTHORITY
a. Employer agrees to employ Employee as City Manager to perform:
1. the functions and duties specified in Sec. 3.020 of the Reno City Charter;
2. the functions and duties specified in City ordinances, resolutions, rules
and policies; and,
3. any other functions and duties as the Cify Council may determine from
time to time, provided such functions and duties are not inconsistent with or in conflict
with the provisions of this Agreement, the Reno City Charter or any other applicable law
or tegulation.
b. Employee agrees to adhere to the professional standards of conduct as prescribed
by the International City/County Management Association ("ICMA"). See, Exh ibit A.
3. COMPENSATION
Employer agrees to pay Employee an annual base salary of TWO HUNDRED
THOUSAND DOLLARS AND NO CENTS ($200,000.00), payable in installments at the same
time that the other management level employees of the Employer are paid.
4. BENEFITS

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a. Management benefits. Except as provided otherwise herein, Employee shall
receive benefits associated with a management level position of the City of Reno, as may be
modified by City Council from time to time, including but not limited to sick leave, vacation
leave, medical benefits, dental benefits, disability and life insurance benefits, retirement benefits,
and ability to participate in the deferred compensation program and related matching
contributions. Employee is subject to applicable City ordinances, resolutions, rules and policies
pertaining to accrual and use of sick and vacation leave by management level employees as the
same cunently exist and may hereafter be modified.
b. Automobile allowance. Employee shall receive an automobile allowance in the
amount of $500 per month while holding the office of City Manager.
c. Reimbursement for temporary housing, commuting and relocation expenses.
Employee must become a resident of the City of Reno on or before December 1, 201 7. In the
meantime, Employee will acquire temporary housing in Reno and commute back and forth
between Reno and Las Vegas. Employer shall reimburse Employee for temporary housing,
commuting, and relocation expenses actually incurred by Employee, up to a maximum of
$10,000.00. Employee shall submit all claims for reimbursement, along with copies of receipts
and expenditures, by December 31, 2017.
d. Initial leave bank credits. On the Effective Date of this Agreement, Employer
shall credit Employee's leave bank with forty (40) hours of vacation leave and forty (40) hours
of sick leave.
5. GENERAL BUSINESS EXPENSES
a. Employer shall reimburse Employee for actual and necessary expenses incurred
within the scope of employment in accordance with applicable City reimbursement policies and
procedures.
b. Employer agrees to budget and pay for travel and subsistence expenses of
Employee for official travel and meetings adequate to pursue necessary official functions for the
Employer.
c. Employer agrees to provide Employee with a credit card for business expenses
which are non-personal and job related.
d. Employer agrees to issue Employee a cell phone to conduct official City business,
and Employee agrees to use the City issued cell phone exclusively to conduct official City
business. Employee shall not use her personal cell phone, email or other electronic transmission
device to conduct official City business. Employee agrees to comply with City policies and
procedures regarding mobile data security and records retention.
e. Employee's arumal budget for professional development shall be included in
City's adopted annual budget. Employer shall pay for or reimburse Employee for professional
development expenses actually incurred, including related subsistence and travel expenses.

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6. PERFORMANCE EVALUATION AND SALARY REVIEW
The Employee's annual performance review will be held in the last quarter of each fiscal
year, or more often as directed by the Employer. It shall be Employee's responsibility to
schedule evaluations. Failure to evaluate shall have no effect on the rights, duties, and
obligations of the parties herein. Except as otherwise directed by Employer, any modifications
of salary, bonus, or other related matters will be included in the next fiscal year's budget.
7. TERMINATION AND SEVERANCE.
a. Termination for convenience. Employee agrees that the City Council may
terminate this Agreement for convenience by providing at least forty-five (45) days written
notice to Employee. In the event of termination for convenience, Employee shall be entitled to a
payout of five (5) month's salary.
b. Charter change. If the Employer, citizens or the legislatul'e acts to amend any
provisions of the charter pertaining to the role, powers, duties, authority, responsibilities of the
Employee's position that substantially changes the form of government, Employee shall have the
right to declare that such amendments constitute termination. Employee shall be entitled to
severance compensation as specified in Section 7(a).
c. Reduction in salary or benefits. If the Employer reduces the base salary,
compensation or any other financial benefit of the Employee, unless it is applied in no greater
percentage than the average reduction of all department heads, the Employee may declare that
such action constitutes a breach of this Agreement and will be regarded as a termination.
Employee shall be entitled to severance compensation as specified in Section 7(a).
d. Removal. The City Council may terminate this Agreement by removing
Employee from office in accordance with the procedure contained in Sec. 3.030 of the Reno City
Charter. Causes for removal include, without limitation: (a) refusal of Employee to follow the
lawful direction of the City Council; (b) failure of Employee to substantially perform any of the
required duties of the City Manager; (c) repeated unexcused absences by Employee; (d) material
violation(s) of City policy(ies) by Employee; (e) Employee's conviction of a felony or
misdemeanor crime involving acts of moral turpitude; (f) use or possession of illegal drugs by
Employee; (g) violation(s) of the Code of Ethical Standards set forth in NRS Chapter 28IA or
Reno Municipal Code, Chapter 2.20 "Code of Ethics for Public Officials"; or (h) breach of this
Agreement. If Employee is removed from office, Employee shall not be entitled to severance
compensation.
e. Severance compensation. Severance compensation, if applicable, shall be paid in
one lump sum and in the same manner as the customary payout of earned salary.
f. Vacation leave. Notwithstanding any other provision in this Agreement to the
contrary, if this Agreement is terminated for any reason, Employee shall be entitled to a payout
of all eamed, bi~t unused, vacation leave.

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8. TERMINATION OBLIGATIONS
a. Employee will return to Employer all of the Employer's property in Employee's
possession relating to her employment with the Employer.
b. Employee will cooperate fully with the Employer in its defense of or other
participation in any administrative, judicial or other proceeding arising from any charge,
complaint or other action that has been or may be filed. This provision survives termination of
this Agreement for any reason.
c. Employer shall defend and indemnify Employee in any civil action brought
against Employee based on any alleged act or omission relating to the Employee's public duties
or employment in accordance with NRS 41.03375 to NRS 41.03473, inclusive (Legal
Representation). This provision survives termination of this Agreement for any reason.
9. RESIGNATION
In the event that the EmplC?yee voluntarily resigns his/her position with the Employer, the
Employee shall provide a minimum of sixty (60) days notice unless the parties agree otherwise.
In the event of resignation, Employee shall not be entitled to severance compensation.
10. HOURS OF WORK
It is recognized that the Employee must devote a great deal of time outside the normal
office hours on business for the Employer, and to that end Employee shall be allowed to
establish an appropriate work schedule.
11. PROFESSIONAL MEETINGS.
Employee is expected to attend appropriate professional meetings and conferences at
local, state and national levels, and to periodically report to the City Council regarding meetings
attended. Employee's annual budget for such memberships and conferences shall be included in
City's adopted annual budget. City will pay Employee's annual membership fees for appropriate
professional organizations.
12. NOTICES.
All notices or other communications required or permitted to be given under this
Agreement shall be in writing and shall be deemed to have been duly given if delivered hand
delivery, by facsimile, by regular or certified mail, postage prepared on the date posted and
addressed to the other party as set forth in this paragraph, or at such other address as the parties
may in writing designate:
City of Reno: Employee:
Attn: Mayor Sabra Smith Newby
P.O. Box 1900 2208 Purple Majesty Ct.
Reno, NV 89509 Las Vegas, NV 86117
schieveh@reno..:gov

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With Copy to:
Reno City Atto1ney
P.O. Box 1900
Reno, NV 89509
hallk@reno.gov

13. GENERAL PROVISIONS


a. Entire Agreement and Modification. This Agreement constitutes the entire
.agreement of the parties and such is intended as a complete and exclusive statement of the
promises, representations, negotiations, discussions, and other agreements that may have been
made in connection with the subject matter hereof. No modification or amendment to this
Agreement shall be binding upon the parties unless it is in writing and signed by the parties. AU
forms of modification or amendment to this Agreement will be approved by Employer in a
noticed public meeting.
b. Waiver of Breach. Failure to declare a breach of the actual waiver or any
pruticular breach of the Agreement or its material or nonrnaterial terms by the other party shall
not operate as a waiver by such party of any other of its rights or remedies as to any other breach-:- ----- -

c. Severability and Enforcement. If any provision contained in this Agreement is


held to be unenforceable by a court of law or equity, this Agreement shall be construed as if such
provision did not exist and the non-enforeeability-of- such-provision-shal-l-not be held to render
any other provision or provisions of this Agreement unenforceable.
d. Interpretation. This Agreement shall be interpreted in accordance with the laws
of the State of Nevada and shall not be interpreted for or against either party by viltue of who
drafted its terms and conditions. Headings utilized in this Agreement are for reference purposes
only and shall not be used to interpret the terms and conditions of this Agreement.
e. Governing Law and Jurisdiction. This Agreement and the rights and obligations
of the parties sha11 be governed by, and construed according to, the laws of the State of Nevada.
The parties consent to the jurisdiction of a court of competent jurisdiction in the County of
Washoe, State of Nevada for any claims relating to this Agreement.
f. Signatures. This Agreement may be executed in separate counterparts, which
may be combined to create a fully executed document. In addition, a facsimile or electronic
signature on this Agreement shall be treated for all purposes as an original signature.
g. Acknowledgement of Parties. The parties acknowledge that they have consulted
with or have had the opportunity to consult with an independent attorney of their own choice
concerning this Agreement and that they have read and understood the Agreement, are fully
aware of its legal effect, and have entered into it freely based upon their own judgment and not
on any representations or promises other than those contained in this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement the day and year

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first heteinabove written.
CITY/EMPLOYER: EMPLOYEE:

- Hillary Schieve, Mayor

CLERK:

Ashley Turney, City Clerk

APPROVED AS TO LEGAL FORM:

- - -- - - -- - --- --~-

. City Attorney's Office

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EXHIBIT A:
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ICMA Code of Ethics


The mission of ICMA is to create excellence in local governance by developing and fostering professional local
government management worldwide. To further this mission, certain principles, as enforced by the Rules of
Procedure, shall govern the conduct of every member of ICMA, who shall:

l. Be dedicated to the concepts of effective and democratic local government by responsible elected officials
and believe that professional general management is essential to the achievement of this objective.
2. Affirm the dignity and worth of the services rendered by government and maintain a constructive,
creative, and practical attitude towatd local government affairs and a deep sense of social responsibility
as a trusted public servant.
3. Be dedicated to the highest ideals of honor and integrity in all public and personal relationships in
order that the member may merit the respect and confidence of the elected officials, of other officials
and employees, and of the public.
4. Recognize that the chief function oflocal government at all times is to serve the best interests of all of the people.
5. Submit policy proposals to elected officials; provide them with facrn and advice on matters of policy as a
basis for making decisions and setting community goals; and uphold and implement local government
policies adopted by elected officials.
6. Recognize that elected representatives of the people are entitled to the credit for the establishment of local
government policies; responsibility for policy execution rests with the members.
7. Refrain from all political activities which undermine public confidence in professional administrators.
Refrain from participation in the election of the members of the employing legislative body.
8. Make it a duty continually to improve the member's professional ability and to develop the competence
of associates in the use of management techniques.
9. Keep the community informed on local government affairs; encourage communication between the
citizens and all local government officers; emphasize friendly and courteous service to the public;
and seek to improve the quality and image of public service.
10. Resist any encroachment on professional responsibilities, believing the member should be free to carry
out official policies without interference, and handle each problem without discrimination on the basis of
principle and justice.
11. Handle al! matters of personnel on the basis of merit so that fairness and impartiality govern a member's
decisions, pertaining to appointments, pay adjustments, promotions, and discipline.
12. Public office is a public trust. A member shall not leverage his or her position for personal gain or benefit.
Adopted by the ICMA Executive Board in 1924, and mmt recently reviled by the membership in April 2015.

1MA
Leaders at the Core of Better Communities